Online Reporter
Business Reporter
THE High Court has scheduled the hearing for the RioZim Limited corporate rescue application for November 12 this year, according to a notice issued by the Registrar of the High Court.
The application, which seeks to prevent the potential liquidation of the mining giant, was filed by RioZim employees on July 7. The workers are represented by the Zimbabwe Diamond and Allied Minerals Workers union (Zidamwu), alongside two other employees from RioZim subsidiaries.
The applicants argue that without urgent remedial measures — such as corporate rescue — the company faces the risk of “undesirable liquidation.”
Earlier this week, Zidamwu Secretary-General Mr Justice Chinhema wrote to the Registrar of the High Court requesting that the matter be expedited. He noted that the application had been lodged nearly four months ago and appealed for a hearing before the conclusion of the 2025 legal year.
“The delay in setting down the matter is causing prejudice and inconvenience to our trade union members, the investing public, and other affected persons. We request that the matter be set for hearing as a matter of urgency before the conclusion of the legal calendar,” wrote Mr Chinhema.
Corporate rescue is a legal process aimed at reviving financially distressed companies. It provides a temporary moratorium on legal proceedings against the company, allowing a business rescue practitioner to develop and implement a plan to restore solvency.
Court documents reveal that RioZim, listed on the Zimbabwe Stock Exchange (ZSE), is facing severe liquidity challenges. As of June 30, 2024, its current liabilities exceeded current assets by approximately ZiG1.04 billion, while total liabilities surpassed total assets by ZiG149.2 million.
The company is struggling to meet financial obligations, including US$5.5 million and ZiG9 million in regulatory and contractual commitments. This has prompted the Zimbabwe Revenue Authority to suspect financial impropriety and demand access to the company’s asset register.
Essential services have also been affected, with electricity cut off at Renco Mine due to a US$4.7 million debt. Additionally, RioZim owes US$5.6 million in outstanding salaries and is facing numerous labour disputes.
Given the company’s negative equity of ZiG149.2 million and declining performance — including a drop in gold production despite rising global prices — the situation is deemed unsustainable and in need of urgent intervention to avoid collapse.
RioZim is also grappling with significant legal challenges, including criminal charges from the tax authority and the Mining Industry Pension Fund, a US$30 million commercial dispute, and a US$55 million debt owed to an associate company.
